China's Outbound Direct Investment

1218 WordsMay 1, 20165 Pages

The type of China’s outbound direct investment has also evolved over the years. In the 1980s and 1990s, China’s ODI was largely undertaken by state-owned enterprises (SOEs) which focused on acquiring assets in natural resources, infrastructure and logistics (Rosen & Hanemann, 2009). This type of ODI was used to meet the demand of a growing China that needed commodities such as oil, iron, timber, and cement to develop its infrastructure and provide the resources needed for its cities to quickly urbanize (Rosen & Hanemann, 2009). There are not ample amounts of these commodities in China, thus Chinese resource firms turned abroad to secure supplies of these natural resources through mining and other extraction investments (Rosen & Hanemann, 2009).
In the past five years, however, China’s outbound direct investment has entered a “new era” as Chinese investment interest has shifted from targeting resource-rich developing countries to advanced economies (Hanemann & Huotari, 2015). Though energy is still a targeted industry, “Chinese firms are eager to acquire advanced manufacturing assets that allow them to modernize technology and move up the value chain” (Hanemann & Lysenko, 2013, p.1). This has led to increased Chinese investment in developed economies, including the United States and Europe, in sectors like high tech, modern service assets and infrastructure (Hanemann & Lysenko, 2013). Chinese direct investment in the United States
Historically, foreign direct investment

United States out of the great depression and cemented them as the world’s greatest economy. War, however, has no place on the horizon for China if they want to become the world’s economic superpower. China relies too heavily on foreign influence and investment to take a risk on nationalistic or militaristic gains. While there are some pro-conflict forces who have power within China, these desires will go unrealized as long as supreme leader Xi Jinping is in power. He understands the interests of China

In today’s increasingly globally integrated business world, foreign direct investment (FDI) “provides a means for creating direct, established and long-lasting links between economies,” according to the 2008 Organization for Economic Co-Operation and Development Benchmark Definition of Foreign Direct Investment (OECD, 2008, p. 14). Foreign direct investment (FDI) is defined as “an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor,” by the

relation to VisitBritain, as a potential market segment.
Firstly, The VisitBritain basically is a Britain’s national tourism agency, responsible for marketing Britain worldwide and developing Britain’s visitor economy. It works with UK trade and investment as well as airlines, travel operators, global trends and the official tourism bodies for London, England, Scotland and Wales.
According to the overview of Visit Britain website,
“As the national tourism agency – a non-department public body funded

positive and negative influence to the hotel industry. This essay will focus on analysing the impact of the globalisation to the China’s hotel industry. And two recommends for the China’s hotel industry would be also elaborated, which are keeping the balance between global and local focus and putting the firm’s value chain on the global scale.
Globalisation and impact on China’s hotel industry
The conception of the globalisation has been recognised since the 1800s. Until now, globalisation has experienced

This paper argues that the rise of China’s global involvement in the 21st century is largely a result of its quest for energy security, which has motivated China to expand its power projection capabilities, extend its influence in the developing world, and take on global leadership roles. China’s rapid economic rise created a huge demand for energy that generated energy security concerns within the government. These concerns led to the onset of Chinese investment around the globe in an effort to control

China economy and control the key industry of China. The adjustment of government policy and stabile political environment played a role in the recent increase of foreign investment in China. By the end of June 1997, it was reported that over 200,000 business joint ventures had been registered in China, with a total foreign investment of $204 billion ($15.7 billion from US companies) (China National Statistics Bureau, 1997). Chinese government was full support the automobile industry and regards this

elected. Their mandate to govern has been based on China’s strong economic performance. Above all else, it is crucial for the Chinese government to maintain its economic success. 29% of China’s GDP is composed of exports of goods and services. According to 2014 numbers, the United States is China’s largest destination for exports, selling $433 billion or 18% of China’s total exports. US private wealth at $88 trillion is nearly four times that of China’s $23 trillion. In order to maintain economic

reforms began) to 2011, China’s real gross domestic product (GDP) grew at an average annual rate of nearly 10%. From 1980 to 2011, real GDP grew 19-fold in real terms, real per capita GDP increased 14-fold, and an estimated 500 million people were raised out of extreme poverty. China is now the world’s second-largest economy and some analysts predict it could become the largest within a few years. Yet, on a per capita basis, China remains a relatively poor country.
China’s economic rise has led